By Globalfinserve Business Desk
March 27, 2025
SSH Group Limited (ASX: SSH), an Australian industrial services provider, has signed a non-binding term sheet to potentially acquire Total Contract Mining (TCM). The acquisition is aimed at expanding SSH’s mining services capabilities and strengthening its position in the Australian resources sector.
This strategic move is part of SSH Group’s ongoing efforts to diversify its business portfolio, enhance operational scale, and offer turnkey mining solutions.
✅ Key Highlights of the Proposed Acquisition
- Non-Binding Agreement Signed:
- SSH Group and TCM have entered into a non-binding term sheet to negotiate the acquisition.
- The due diligence process is expected to conclude within four weeks of the agreement date.
- Exclusivity Period:
- During the due diligence period, TCM has agreed to exclusive negotiations with SSH.
- TCM will refrain from engaging with other potential buyers.
- Strategic Rationale:
- The deal is expected to enhance SSH’s mining services vertical, enabling it to deliver comprehensive mining solutions.
- It aligns with SSH’s strategy to scale operations, create synergies, and drive growth in the Australian mining sector.
- Leadership Expansion:
- As part of the acquisition, two key TCM executives, Kevin Malaxos and Sam Baker, will join SSH.
- Malaxos is being considered for a non-executive director position on SSH’s board.
- Financial Considerations:
- The financial details of the transaction are yet to be determined.
- The acquisition will likely involve a mix of cash and SSH securities, linked to performance milestones.
✅ Strategic Importance of the Acquisition
The proposed acquisition reflects SSH Group’s ambition to become a major player in the Australian mining services sector. The move comes at a time when the mining industry is experiencing a surge in demand for contract mining services, driven by:
- Increased exploration activities.
- Rising demand for critical minerals and metals.
- Greater emphasis on outsourced mining operations to control costs and improve efficiency.
1. Strengthening Mining Services Division
SSH Group has been actively expanding its mining services vertical by restructuring its business units and entering into key partnerships.
- The acquisition of TCM will provide SSH with enhanced technical capabilities, allowing it to offer end-to-end mining solutions, from exploration to production support.
- The integration of TCM’s expertise is expected to enhance operational efficiency and improve service delivery.
2. Increasing Market Share
By acquiring TCM, SSH Group aims to:
- Expand its market presence in the mining services sector.
- Offer a broader range of solutions, including mining operations management, logistics, and equipment hire.
- Boost revenue growth by gaining access to TCM’s existing client base and contracts.
✅ Leadership Statements
Daniel Cowley-Cooper, Managing Director of SSH Group, emphasized the strategic importance of the deal:
“The signing of this non-binding term sheet for the potential acquisition of Total Contract Mining represents another significant step in our strategy to grow our Mining Services division. This opportunity, combined with our recent progress in securing key agreements and advancing discussions in the sector, positions SSH Group for substantial growth in the Australian resources industry. This is a move designed to create value, deliver scale, and build resilience in SSH’s operating model.”
✅ Financial and Operational Impact
The financial specifics of the deal are still being finalized through the due diligence process. However, industry experts anticipate:
- Revenue Synergies:
- The acquisition could boost SSH’s top-line growth by adding TCM’s contracts and mining operations to its portfolio.
- Profitability Improvements:
- The combined entity is expected to benefit from cost synergies, operational efficiency, and shared infrastructure.
- Equity and Cash Considerations:
- The transaction will likely include a mix of cash and SSH securities, ensuring that TCM shareholders remain invested in the company’s long-term growth.
✅ Broader Industry Context
The Australian mining services sector is witnessing increased consolidation activity as companies strive to achieve scale and improve operational efficiency.
1. Rising Demand for Contract Mining
- Outsourced mining services have become increasingly popular among mining companies seeking to reduce costs and improve efficiency.
- The acquisition of TCM positions SSH to capitalize on this trend by offering integrated mining solutions.
2. Garnet Project Collaboration
In February 2025, SSH Group signed a non-binding heads of agreement with Pure Resources to accelerate the development of the Reedy Creek Garnet Project in Western Australia.
- The Reedy Creek project is expected to produce industrial-grade garnet used in abrasive blasting and waterjet cutting.
- The collaboration with Pure Resources reflects SSH’s commitment to expanding its presence in the Australian mining sector.
✅ What’s Next for SSH and TCM?
The due diligence process is expected to be completed within four weeks, during which both parties will:
- Evaluate financial, legal, and operational metrics.
- Assess the synergy potential of the combined entity.
- Negotiate the final terms of the acquisition.
Following the due diligence, SSH Group will seek board and shareholder approval to finalize the acquisition.
✅ Implications for the Australian Mining Sector
If finalized, the acquisition could have significant implications for the Australian mining services landscape:
- Increased competition: The combined entity will be better positioned to compete with larger mining services providers.
- Enhanced service offerings: The deal will allow SSH to provide comprehensive, end-to-end mining solutions.
- Potential for further consolidation: The acquisition could trigger further consolidation in the sector, as smaller players seek partnerships to scale operations.
✅ Conclusion
The potential acquisition of Total Contract Mining (TCM) by SSH Group marks a strategic expansion into the Australian mining services sector. If finalized, the deal will enhance SSH’s operational capabilities, broaden its service portfolio, and position it for significant growth in the resources industry.
As SSH Group progresses through due diligence and final negotiations, the market will be closely watching for further details on the financial structure and potential revenue synergies from the acquisition.
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